Short-Term Rentals
A solution for investors who need permanent financing for their rentals listed on Airbnb and VRBO. This product allows DSCR to be calculated by using 12 months of operating history or AirDNA rents as market rent.
- Finance up to 75% loan to value; 65% for cash-out
- Single-family & multifamily properties
- No Prepayment Penalties
- Multi-year bridge loan
Lending Criteria
| LOAN AMOUNT | $75,000 to $1.5 million. Loan amounts outside of this range considered. |
| LOAN TERM | 30-year term; fully amortizing entire term, or I/O for 10 years with rate fixed for 5 years then adjustable every 6 months |
| LOAN TO VALUE | Up to 75%; 70% for cash-out refinances with low seasoning |
| DEBT COVERAGE | Minimum 1.00 DSCR |
| PREPAYMENT PENALTY | Multiple PPP options available, including No PPP (depending on the state) |
| CREDIT FOR LAND | 100% of acquisition cost |
| CLOSING TIMELINE | 2-3 weeks |
Guidelines
| FICO | 700 min soft credit assessment |
| REVENUE VERIFICATION | Short-term (Airbnb/VRBO) revenue is verified through 12 months operating history and AirDNA market rents |
| PROPERTY CONDITIONS | Appraisal showing C3 condition or better |
| ELIGIBLE PROPERTIES | Single-family, townhomes, warrantable condos, 2-4 units, and 5-10 units |
| ELIGIBLE STATES | Nationwide except ND, NV, SD, VT, and WV |
| BORROWER | Entities only. A personal guarantee is required. Non-recourse is not allowed. |
| MORTGAGE PAYMENTS | Taxes and insurance are escrowed. Mortgage payments are collected by ACH. |